Ministry of Petroleum & Natural Gas
azadi ka amrit mahotsav

Subsidy on Cooking Gas

Posted On: 27 JUL 2023 5:08PM by PIB Delhi

Government modulates the effective price to consumer for Domestic LPG. Under the Direct Benefit Transfer for LPG (DBTL) scheme, the subsidy, as admissible, is credited to the bank accounts of eligible beneficiaries. Further, Government has started a subsidy scheme exclusively for poor households. W.e.f. 21st May, 2022, Government is giving a targeted subsidy of Rs. 200 per 14.2 Kg cylinder for Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries for upto 12 refills a year for years 2022-23 and 2023-24.

During the period 2020-21 to 2022-23, the average Saudi CP (international benchmark for LPG pricing) went up from $415 per MT to $712 per MT.  However, the increase in international prices was not fully passed on to Indian citizens, due to which the Public Sector Oil Marketing Companies (OMCs) suffered under recoveries of approximately Rs.28000 crore on sale of domestic LPG. To compensate this, the Government approved a one-time compensation of Rs.22,000 crore to OMCs in FY 2022-23. During Covid Pandemic, Government provided about 14.17 Crore free LPG refills to PMUY households under Pradhan Mantri Gareeb Kalyan Package during 2020.

This information was given by the Minister of State in the Ministry of Petroleum & Natural Gas, Shri Rameswar Teli, in a written reply in the Lok Sabha today.

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RKJ



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